PayPal: Demand for Electronic P2P Payments Growing Rapidly

A study released this week sponsored by FIS, PayPal and NACHA, found that demand for electronic P2P payments and transfers is growing rapidly, and that the interest of making these and other payment transactions through an ePayment Portal is also strong.

According to the study, of those who were interested in the Portal concept, 70% would be likely to use P2P payment services within that Portal.

"Results showed that almost 50 percent of consumers surveyed expressed interest in replacing cash and checks using electronic P2P for common needs," says Dan Schatt, GM of PayPal’s Financial Innovations team. "For example, sending money to a child at college, sending money out of the country or splitting the cost of a gift with family members, co-workers or friends."

"Research indicates that banks will benefit most by promoting P2P payments to online banking and bill payment customers, as well as users of mobile banking services and payments," he adds. "There is significant opportunity to drive adoption by increasing consumer awareness of the simplicity of initiating electronic P2P payments. As a proof point, 34 percent who expressed interest in the Portal concept indicated they would be willing to switch to a bank that offers electronic P2P payments as part of an ePayment Portal."

In other PayPal news, this week the company announced that it opened its Mobile Payments Library for app developers to give them an easy way to get payments from within their apps.